Dow jumps 470 points to a record as another potentially effective vaccine fuels recovery hope
U.S. stocks rose on Monday after preliminary coronavirus vaccine data from Moderna further lifted expectations of a strong economic recovery.
The Dow Jones Industrial Average gained 470.63 points, or 1.6%, to close at 29,950.44.
The 30-stock Dow logged intraday and closing record highs. The S&P 500 climbed 1.2% to 3,626.91, posting an all-time closing high.
The Nasdaq Composite advanced 0.8% to 11,924.13.
Stocks that would benefit from the economy reopening led the way higher. United Airlines was up 5.2%, and Carnival closed 9.7% higher. Bank stocks such as Citigroup and Wells Fargo gained more than 3% each and JPMorgan Chase advanced 2.8%. Moderna shares jumped 9.5% on the day.
Shares of companies that have thrived during the pandemic as people spend more time at home lagged the boarder market. Netflix slid 0.8%. Amazon shares closed flat.
Moderna said Monday that its coronavirus vaccine was more than 94% effective during a late-stage trial. The promising announcement makes the Massachusetts-based biotech firm the second drugmaker to say it has a potentially effective vaccine.
Similar trial results last week from Pfizer and BioNTech drove investors into underperforming names dependent on a vaccine reopening the economy. The companies said at the time that their candidate was more than90% effective in preventing Covid-19 among participants.
Traders were also excited on Monday after Moderna said its vaccine remains stable at 36 to 46 degrees Fahrenheit, the temperature of a standard home or medical refrigerator, for up to 30 days. It can be stored for up to six months at negative 4 degrees Fahrenheit. By comparison, Pfizer’s vaccine requires a storage temperature of minus 94 degrees Fahrenheit.
To be sure, the number of coronavirus cases is still rising, thus threatening the prospects of a swift economic recovery.
Reference: CNBC
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